Holding

The Supreme Court held that permanency cannot be granted without existing posts, the High Court erred in treating the State’s inaction as an unfair‑labour‑practice under Item 6, the universities are liable for an unfair‑labour‑practice under Item 9, the award’s wage increase is permanent, and its benefits must be extended to all daily‑wage workers on the principle of equal pay for equal work.

Summary

The case involved daily‑wage labourers employed by several Maharashtra agricultural universities who claimed permanency, wage scales, and other benefits. An industrial tribunal awarded increased daily wages and certain benefits but denied permanency; the award was not challenged. The universities, citing lack of sanctioned posts and financial constraints, sought to limit the award’s operation and contested orders of the High Court that treated the State’s inaction in creating posts as an unfair labour practice under Item 6 of the Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act. The Supreme Court held that permanency cannot be granted where no posts exist, that the High Court’s reasoning linking the State’s inaction to an unfair‑labour‑practice violation was untenable, and that the universities were guilty of an unfair‑labour‑practice under Item 9 for failing to pay the award amounts. The Court further ruled that the award’s wage increase is a permanent adjustment and must be extended to all daily‑wage workers, including those not covered by the original award, on the principle of equal pay for equal work. Consequently, the universities were directed to compute and pay the due amounts to all affected workers.

Issues considered

Whether status of permanency can be granted to daily‑wage workers when no sanctioned posts exist.
Whether the State’s failure to create posts amounts to an unfair‑labour‑practice under Item 6 of Schedule IV of the MRTU & PULP Act.
Whether the universities are guilty of an unfair‑labour‑practice under Item 9 of Schedule IV for non‑payment of award amounts.
Whether the award’s wage increase is a one‑time adjustment or a permanent increase applicable thereafter.
Whether the benefits of the award must extend to daily‑wage workers not covered by the award under the principle of equal pay for equal work.

Legislation cited

Industrial Disputes Act, 1947s. 10(1)(d), s. 12(5), s. 33-C(1)
Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour Practices Act, 1971s. Schedule IV Items 5,6,9,10
Minimum Wages Act

Subjects

industrial disputedaily wagerspermanencyunfair labour practiceequal pay for equal workaward implementationMaharashtra Agricultural Universities ActMRTU & PULP ActIndustrial Disputes Act

Judgment

MAHATMA PHULE AGRICULTURAL UNIVERSITY AND ORS. A
v.
~
NASIK ZILLA SHETH KAMGAR UNION AND ORS.

JULY 24, 200 l

[S. RAJENDRA BABU AND S.N. VARIA VA, JJ.] B

Industrial Disputes Act, 1947.

Sections 10(/)(d), 12(5) & 33-C(l)-lndustrial dispute-Agricultural
Universities funded and controlled by State Government-Daily Wagers c
therein claiming pennanency-Held, status ofpermanency cannot be granted
when there are no posts-Inaction by State Government to create posts-
Held, Universities not guilty of unfair trade practice under item 6 of Schedule
.f V..,.-Daily Wages increased-Award not challenged-Universities not
implementing award-Held, Universities guilty of unfair trade practice under
Item 9 of Schedule IV-The Maharashtra Agricultural Universities (Krishi D
Vidyapeeth) Act, 1983-Maharashtra Recognition of Trade Unions &
Prevention of Unfair Labour Practices Act, 1971.

Service Law-Daily wagers-Industrial dispute by some daily wagers-
Award increasing their daily wages-Whether other daily wagers also entitled
E
to its benefit-Held, other daily wagers also entitled to benefit of award-
Equal pay for Equal work-Held, principle applicable.

Appellants are Agricultural Universities established and function under
provisions of The Maharashtra Agricultural Univenities (Krishi Vidyapeeth)
Act, 1983 and are controlled and funded by State of Maharashtra. Appellants F
own large tracts of land which are used for agricultural education and
research activities for which th~y had engaged daily wage labourers. Since
these workmen were not granted same wages and benefits available to
permanent worked, some workmen raised industrial dispute and claimed
permanency, corresponding pay scales, dearness allowance, enhanced rates
of daily wages, house rent allowance, etc., Tribunal disallowed claim for G
permanency and corresponding wages but granted some other benefits
including increase in rates of daily wages, etc. This award was not challenged.
,,, { These workmen filed an application under Section 33-C(2) of the Industrial
Disputes Act for computation of amount payable as per the Award. Since
benefits granted under award were not being given to workmen who had not
1089
H
1090 SUPREME COURT REPORTS [2001] 3 S.C.R.

A raised dispute, various complaints were made by such workmen under
Maharashtra Recognition of Trade Unions & Prevention of Unfair Labour ,
Practices Act, 1971 (MRTU & PULP Act). Various orders came to be passed ;--..
on these complaints granting permanency to these workmen. In the
proceedings under Section 33-C(2), appellant-Universities were directed to
B pay as per the award and amount payable to each workman was computed and
set out.

Appellant-Universities filed writ petitions challenging orders in
application under Section 33-C(2) of the Industrial Disputes Act and
complaints under MRTU & PULP Act. High Court held that Unfair labour
C practice under Item 6 of Schedule IV of MRTU & PULP Act has been
committed; and that though workmen were not entided to status of permanency,
they were entided to wages and other benefits applicable to permanent workmen
and directed payment accordingly. Aggrieved by the judgement of the High
Court, various Universities and the State, and workmen against the rejection
of their demand for permanency, have filed the present appeals. Workmen
D also filed Con!empt Petitions. '

Workmen contended that they were entitled to be made permanent.
Universities contended that Award had been implemented; that it was a one
time Award and was not to operate forever; and that they did not have funds
E to make payments.

Disposing the appeals, the Court

HELD : 1. Status of permanency cannot be granted when there are no
posts. [1097-F]
' . '

F 2.1. The High Court indirectly does what it could not do directly. The ,1,- ·

High Court, without granting the status of permanency, grants wages and
other benefits applicable to permanent employees on the specious reasoning
that inaction on the part of th_e Government in not creating posts amounted
to unfair labour practice under Item 6 of Schedule IV ofMRTU & PULP Act.
G Once the High Court had come to the conclusion that for lack of posts the
employees could not be made permanent, it could not have then gone on to
hold that they were continued' as "badlis'', casuals or temporaries with the
object of depriving them of the status and privileges of permanent employees.
The complaint was not against the State Government. The complaint was r-~
against the Universities. The inaction on the part of the State Government
H to create posts would not mean that an unfair labour practice has been
-·F
MAHATMA PHU LE AGRI. UNI. v. NASIK ZILLA SHETH KAMGAR UNION ] 091

committed by the Universities. The reasoning given by the High Court to A
conclude that the case was squ~rely covered by Item 6 of Schedule IV of the
_. MRTU &PULP Act cannot be sustained at all and the impugned judgement
has to be and is set aside. (1098-A-B; E-F-G)

2.2. The High Court erroneously ignored the fact that approximately
2000 workmen had not even made a claim for permanency before it. Their B
claim for permanency had been rejected by the award. The award was never
challenged. These workmen were only seeking quantification of amounts as
per the award. The challenge before the High Court, was only to the
quantification of the amounts. Yet by its sweeping order the High Court
grants even to these workmen, the wages and benefits payable to other
permanent workmen. (1098-B-C)
c
3. While the demand for wage scale on permanent status had been
refused the rates of wages have been increased by the award. This increase
is not a one time increase based on the pay at that time. It is a permanent
increase which would go on varying as the basic starting wages and the
dearness allowance kept on changing. The Universities have not made payment
D
till date on this basis. There is no infirmity in the Order. The Universities
have to pay on the basic calculated therein. The action of Universities in not
-A making payment on this basis definitely amounts to unfair labour practice
under item 9 of Schedule IV.

To that extent there had been an unfair labour practice. The Universities
E
are directed to forthwith work out the wages due to the workmen as per the
Award and to make the payments of those amounts. (1100-B-C-D-E-F)

4. The award was in respect of approximately 2000 workmen. As
regards the other remaining workmen who arc not covered by the Award the
!
principle of equal pay for equal work would apply. Therefore, the rest of the
F
workers would also become entitled to payments and benefits as given under
the Award. There is no justification in the Universities in not making
payments and giving those benefits to the remaining workers on the same
basis. It is directed that the benefits of the Award be given even to the
workmen who were not covered by the said award. (1100-F-G-H; 1101-AJ G
5. There can be no justification in the State Government not making
available the required funds. The Universities are imparting education. For
. . ,_ i the purpose of the education it is necessary for them to maintain the
agricultural fields and to carry on experiments. To maintain agricultural
fields they required daily wagers. As the daily wagers were required the H
1092 SUPREME COURT REPORTS [200 I] 3 S.C.R.

A State Government cannot say that they would not pay the daily wagers what
is due to them. [1101-C, FJ

Chandigarh Administration v. Rajni Va/i, [20001 2 SCC 42 relied, on.

6. In view of the directions given above, no action is proposed to be
B taken in the contempts petitions. The workmen will be at liberty to adopt
appropriate proceedings if the judgement is not complied with within a
reasonable time. (1102-AI

CIVIL AP PELLA TE JURISDICTION : Civil Appeal Nos. 8640-
8659 of 1997. ·+-'

c From the Judgment and Order dated 16.9.97 of the Bombay High Court
in W.P. (C)Nos. 721, 722, 723, 172? and 1728/90, 1667,&2088/88,4101195,293,
294, 295, 296, 297, 298, 299, & 300/97, 1666/88, 1437.and 1438/97 1238of1986.

WITH
D (CA Nos. 4457-4460/2001, 4461-70/2001and1103-1117of1999)

AND

CONTEMPT PETITION NOS. 253-263 OF 1998 IN );.

C.A. Nos. 8646, 8648-49, 8651-55 and 8657-59 of 1997
E
Vinod Bobde, Yashank Adyaru, Ashwini Kumar, Ms. Indira Jai Singh,
K.K. Singhvi, Shivaji J_adhav, Sunil Kimar Verma, S.V. Deshpande, S.S. Shinde,"
S. Ravindra Bhat, Naveen R. Nath, Lalit Mohini Bhat, Ms. Hetu Arora, S.S.
Pakale, Ashok K. Gupta, Farrukh. Rasheed, Mukesh Kumar, Sushi! Karanjakar
F and Dr. Nafis A. Siddiqui, For the appearing parties.
"'
The Judgments of the Court was delivered by

S.N. VARIA VA, J. Leave granted in SLP (C) Nos. 418-421 /1999 and SLP
(C) Nos. 9023-9032/1998.

G All these Appeals are against the Judgment of the High Court dated
16th September, 1997.

Briefly stated the facts are as follows.
y
Civil Appeals Nos. 4461-447012001 and 4457-4460/2001 [arising out of
H SLP (C) Nos. 418-421/1999 and SLP (C) Nos. 9023-9032/1998] are filed by two
MAHATMA PHU LE AGRI. UNI. v. NASIK ZILLA SHETH KAMGARUNION [VARIA VA, J.] 1093

Unions. Civil Appeal Nos. 1103-1117 of 1999 are filed by State of Maharashtra. A
--'- All the other Appellants are Agricultural Universities in the State of
Maharashtra. These Universities are established and function under the
provisions of The Maharashtra Agricultural Universities (Krishi Vidyapeeth)
Act, 1983. The State Government controls these Universities and is responsible
for funding them. The Universities own large tracts of land which are used
for agricultural education and research activities. For their agricultural activities B
these Universities had engaged daily wage labourers. These workmen were
not granted the same wages and not given the benefits available to permanent
workmen. It is stated across the bar that there were approximately 4,000 such
daily wage labourers.

Approximately 2000, out of the 4000 labourers, raised an industrial
c
dispute which was referred to the Industrial Tribunal under Section 10 ( 1) ( d)
read with Section 12 (5) of the Industrial Disputes Act. The said reference was
numbered as (IT) No. 48 of 19.81. In this reference the workmen claimed
permanency, pay scales on the basis of permanency, dearness allowance and
enhanced rates of daily wages, house rent allowance, either a vehicular D
transport or transport allowance and concessional rates of agricultural produce
like foods, vegetables, eggs, milk etc. On 20th February, 1985 and Award came
to be passed by the Tribunal. By this Award claim for permanency and wages
on the basis of permanency was disallowed. However, the following reliefs
were granted. E
"18. For the reasons discussed above, I make the award, as under:-

(i) With effect from 1st February, 1985, workmen of Party No. I
working on daily wages, for whom the present dispute is raised,
should be paid by Party No. 1, as daily-wages, an amount equal to F
1130 of the amount of basic starting wages and dearest allowance,
payable to a confirmed permanent workman of the same or similar
grade and category as his monthly wages. For the month of February,
that amount should be worked out by dividing the monthly wages (i.e.
basic starting wage, in the wage-scale and dearness allowance, of a
permanent workman of corresponding category by the total number G
of days for that month of February, in that year. Each workman, who
has actually worked or who could be deemed to have worked for six
days in a week should be paid the wages at the above rate, for that
day, which would be the day of weekly-off for that workman.

(ii) Paid weekly-off should be given on the Sundays followings H
1094 SUPREME COURT- REPORTS [2001] 3 S.C.R.

A the Second and Fourth Saturday in each month, if work is refused to
the workman concerned by Party No. 1, on the Second or Fourth
Saturday and if the workman concerned have actually worked for five
days in that week.

(iii) Leave (Including maternity leave, sick leave etc.) which is at
B present being granted to. the permanent workmen, should be granted
and extended by the Party No.1 to the workmen, who have completed
240 days of actual uninterrupted work in a period of J2 months for a
consecutive period of three years.

(iv) Each Watchman, working on daily wages basis, in the
c employment of Party No. I, Should be provided with a three cell torch,
ifhe is assigned duty, during night-time and such watchman, to whom
duty during night-time is assigned, should be provided cells for that
torch at the rate of six cells for each month, during the period, during
which the said watchman works during the night-time.
D (v) Party No. I should follow the instructions, in Clause 2 (g) of
the letter dated 24th March," 1964, from the Government of Maharashtra,
to the Director of Agriculture, if the conditions specified in that letter )-
and in particular in the said Clause 2(g) of that letter, are specified and
fulfilled.
E (vi) The Party No. I should prepare a provisional seniority list of
workmen, working on daily wage basis, including female workers and
display the _same, for the information of the workers concerned and
call for objections and suggestions in respect of that seniority list,
and give opportunity to tlie workers and their Union to substantiate
F their objections etc., and should finalise the seniority list, ·after taking
into consideration those objections etc., alld duly dealing with those
objections.

(vii) If any of the workmen are at present, or would be, at any time,
in future, during the period of the operation of this Award, entitled to
G get wages etc., at higher-rates, under law or agreement, etc., than
those, to which he would be entitled to, in the present A ward, wages
at those higher-rates, would be payable by the Party No. 1 to those
workmen.

(viii) Facilities and benefits etc. which are being extended, at
H present, to those workmen, on daily wages, by Party No. 1, should not
MAHATMA PHU LE AGRI. UNI. v. NASIK ZILLA SHETH KAMGAR UNION [V ARIA VA, J.] 1095
be and would not be curtailed or abridged in any way and should be A
-....A continued to be extended to those workmen.

(ix) The rest of the demands are rejected".

This Award was not challenged.

Thereafter approximately 127 other daily wagers raised an industrial
B
dispute making the same demands. The reference was numbered as (IT) No.
27of1984. This culminated in an Award dated 1st April, 1985. By this Award
it was directed that all workmen, out of these 127 workmen, who had completed
6 months of services as on 1st January, 1978 should be treated as permanent
employees and all employees completing 6 months of service in future should c
be made permanent. The other demands were also allowed. It is an admitted
position that this Award was also not challenged. It fact, the Universities
implemented the Award and made the 127 persons involved therein as
permanent employees. In these Appeals we are thus not concerned with these
worlanen.
D
As stated above the Award dated 20th February, 1985 in (IT} No. 48 of
1981 was not challenged. However, a restrictive interpretation, as set out
hereafter, was given to that Award by the University. The workmen, therefore,
filed an Application under Section 33-C(2} of the Industrial Disputes Act to
have the amounts, payable as per the Award, computed.
E
Further as the benefits granted under this Award were not being granted,
even in the limited manner, to the daily wagers who had not raised a dispute,
various complaints under the Maharashtra Recognition of Trade Unions &
Prevention of Unfair Labour Practices Act, 1971 (hereinafter for sake of
_,,
~ convenience referred to as the MRTU & PULP Act) were made. We have not
been shown all the complaints. We have been shown one or two of these
F
complaints. These complaints are of unfair labour practices under items 5,6,9,
and 10 of Schedule IV of the MRTU & PULP Act. We have been fairly told
that some of the complaints were only under Item 6 of Schedule IV of the
MRTU & PULP Act. A numbe.r of Orders came to be passed in these
complaints. In some of these Orders, all daily wagers who had completed G
1,000 days, were granted permanency and all benefits of permanency. In some
other Orders daily wagers who had completed 6 months were granted
........ 1, permanency and the benefits of permanency. In other Orders various other
· periods were fixed for granting permanency.

In the meantime, the proceedings under Section 33-C(2} of the Industrial H
1096 SUPREME COURT REPORTS (200 I] 3 S.C.R.

A Disputes Act ended in a Judgement dated 27th April, 1994. By this Judgment
the Appellant Universities were directed to pay as per the Award dated 20th
February, 1985. The amounts payable to each workman as on that date was
computed and set out. The Appellant Universities were thus directed to pay
a sum of Rs. 4,16,97,937.98.

B The Appellant Universities filed a large number of Petitions before the
High Court. Br· these Petitions they challenged the Judgment dated 27th
April, 1994 awarding a sum of Rs. 4,16,97,937.98 and the various orders
passed in the complaints under the MRTU & PULP Act. Thus to be noted
that, even no~, the Appellant Universities have not challenged the Award
~-
C dated 20th February, 1985 in (IT) No. 48of1981 or the Award dated 1st April,
...
1985 in (IT) No. 27of1984 .
All these Petitions came to be disposed of by the impugned Judgment,
dated 16th September, 1997. As stated above the challenge before the High
Court was two fold i.e. a challenge to the computation of the sum of
Rs. 4,16,97,937.98 and the other to the various Orders passed in complaints
D under the MRTU & PULP Act. Before the High Cm1rt the decision of this
Court in Civil Appeal Nos. 5726-5727 of 1994 (arising out of SLP (C) Nos.
4658/93 and 5717/93)"dated 18th August; 1994 was cited on behalf of the
Universities. In this decision it has been held by this Court that even though·
the workmen may be working for a long period of time or more than 240 days,
E still they would not acquire a permanent status to be absorbed as regular
employees. It was held that for absorption as regular employees existence of
posts is mandatory and if no p2st exists, then even though, the workers may
have worked for a long period of time they cannot be regularised or made
permanent. The High Court held as follows:
"6. Undisputedly the workers covered by the various complaints are
F
working in various projects of the Vidyapeeth on a temporary basis.
They are working as such for a considerab~e period. It is not disputed
before us that these workers so covered have also completed 240
days. What is apparent is that the Vidyapeeth is continuously extracting
work from them. Not granting status of a permanent employee has
G certainly deprived them of the benefit. Such inaction on the part of
the Government of not sanctioning posts could not be innocuous.
When the result of inaction is definite and explicit the object of not
doing it can be safely inferred. As such the a.ct is squarely covered
by Item 6 of Schedule IV of the MRTU & PULP Act.
H 7. In view of the above decision of the Supreme Court, even if the
MAHATMA PHULE AGRL UNI. 1•. NASIK ZILLA SHETH KAMGAR UNION [VARIA VA,J.] } 097

employees is so covered may not be entitled to status of a permanent A
_....._ employee, however, they cannot be deprived of the privileges and
benefits of the permanent employee as envisaged by the Item 6 of
Schedule IV. They are, therefore, entitled to wages and other benefits
applicable to the permanent employees. In view of this, we are not in
a position to sustain the Order of the Industrial Court directing the
Vidyapeeth to confirm these employee within a stipulated period. B
Order to that extent is modified. As observed, However, the employees
so covered by various complaints are entitled to the benefits including
'-,. wages applicable to the permanent workmen. It is reported that the
employees are struggling for this legitimate demand since long. Some
of the petitions filed by the employees are also for the implementation c
of the order of the Industrial Court. In view of this, subject to
modification as indicated above, we confirm the orders of the Industrial
Court and direct the Respondent Vidyapeeth to clear all the dues of
the workers who are eligible and covered by various complaints within
a period of six weeks from today. The amount due and payable to the
workers shall carry an interest at the rate of 6% from the date of the D
order of the Industrial Court."

The various Universities have filed these civil Appeals impugning this
Judgment. State of Maharashtra has also filed Civil Appeal Nos. 1103-1117 of
1999. Civil Appeals Nos. 4461-4470/2001 and 4457-4460/2001, [arising out of E
SLP (C) Nos. 418-421/1999 and SLP (C) Nos. 9023-9032/1998] have been filed
by the workmen impugning the said judgment to the extent that demand for
permanency is rejected.

Mrs. Jaising, in support of Civil Appeals Nos. 4461-4470/2001and4457-
~
4460/2001 [arising out ofSLP(C) Nos. 418-421/1999 and SLP (C) Nos. [9023- F
9032/1998] submitted that the workmen were entitled to be made permanent.
She, however, fairly conceded that there were no sanctioned posts available
to absorb all the workmen. In view of the law laid down by this Court status
of permanency cannot be granted when there are no posts. She, however,
submitted that this Court should direct the Universities and the State
G
Governments to frame a scheme by which, over a course of time, posts are
.,
created and the workmen employed on permanent basis. It was, however,
fairly pointed out to Court that many of these workme;i have died and that
"---(-
the Universities have by now retrenched most of these workmen. In this view
of the matter no useful purpose would be served in undergoing any such
exercise. H
'"1--
,

1098 SUPREME COURT REPORTS [2001] 3 S.C.R.

A To be seen that, in the impugned Judgment, the High Court notes that,
as per the law laid down by this Court, status of permanency could not be )-
granted. In spite of this the High Court indirectly does what it could not do
directly. The High Court, without granting the status of permanency, grants
wages and other benefits applicable to permanent employee on the specious
B reasoning that inaction on the part of the Government in not creating posts
amounted to unfair labour practice under item 6 of Schedule IV ofMRTU &
PULP Act. In so doing the High Court erroneously ignores the fact that
approximately 2,000 workmen had not even made a claim for permanency
before it. Their claim for permanency had been rejected by the Award dated
20th February, 1985. These workmen were only seeking quantification of
C amounts as per this Award. The challenge, before the High Court, was only
to the quantification of the amounts. Yet by this sweeping Order the High
C~mrt grants, even to these workmen, the wages and benefits payable to other
permanent workmen.

Further, Item 6 of Schedule IV of the MRTU & PULP Act reads as
D follows: .

"6. To employees as" badlis", casuals or temporaries and to continue
them as such for years, with the object of depriviµg them of the status
and privileges or permanent employee."

E The complaint was agaiitst the Universities. The High Court notes that as
there were no posts the employees could not be made permanent. Once it
comes to the conclusion that for lack of posts the employees could not be
made permanent how could it then go on to hold that they were continued
as "badlis", casuals or temporaries with the object of depriving them of the
status and privileges of permanent employees. To be noted that the complaint
F was not against the State Government. The complaint was against the
Universities. The irtaction on the part of the State Government to create posts
would not mean that an unfair labour practice had been committed by the
Universities. The reasoning given by the High Court to conclude that the
case was squarely covered by Item 6 of Schedule IV of the MRTU & PULP
G Act cannot be sustained at all and the impugned Judgment has to be and is
set aside. It is, however, clarified that the High Court was right in concluding
that, as per the law laid down by this Court, status of permanency could not
..'
be granted. Thus all orders wherein permanency has been granted (except
Award dt. 1st April 1985, in (IT) No. 27of1984) also stand set aside.

H The facts still remain that the Award dated 20th February, 1985 in (IT)
MAHATMA PHU LE AGRI. UNI.'" NASIK ZILLA SHETH KAMGAR UNION [VA RIA V A.J.] 1099
No. 48 of 1981 has never been challenged. This Award has not been fully A
- •....l. implemented by the Appellant Universities. Mr. Bobde insisted that the Award
was implemented. He submitted that this was a one time Award which did not
provide for paying 1130 o::: the wages and the other benefits for ever. He
submitted that this Award was not to operate for subsequent periods when
the minimum wages, under the Minimum Wages Act, became more than what
was provided in the Award. He submitted that, therefore, the Universities B
have paid, as per this Award, till the minimum wages became more than what
was Awarded. He submitted that thereafter the Universities are paying the
~
minimum wages as prescribed in the Minimum Wages Act. In support of his
submission he relied upon Para 7 of the Award which reads as follows:

"Demand No. 2-Wage-Scales. c
7. There is thus no guarantee that there would be any appreciable
increase in the near future in the Party No. 1's income from various
sources available to it. Consequently, it would have to be concluded
that Party No. l, would not be able to bear any burden, which would
go on increasing every year. If the 2,000 or so workmen who according D
to Party No. 2, in view of their length of service deserve to be made
permanent, are accordingly made permanent and if consequently wage-
scales providing for annual increments are required to be made
applicable to all of them, the annual wage-bill is bound to go up on
progression, due to the requirement of granting the annual increments E
and the resultant increase in other amounts in many cases. It is not
shown that any section of the Party No. I could be treated as a
Factory and an Establishment, so as to enable the application of
Industrial Employment Standing Orders Act to the workmen working
atleast in those sections, if some of the workers for whom present
Reference is made are working in those sections. Even in that event, F
distinction between casual and temporary workmen may make some
difference. Similarly, the Party No. 1, which is essentially on Educational
Institute, cannot be treated on par with the Maharashtra Farming
Corporation or Government Department. Even under the Kalelkar Award,
even status of being on regular temporary establishment can be claimed
G
only after five years. The Universities Cannot, moreover, be treated on
par with Government in respect of the availability of funds .'.!nd of the
'-i- sources and avenues open for raising the same. Thus, it does not
appear that any status of permanence which would entail and involve
the granting of annual increments envisaged by wage-scale, can be
accorded to the workmen, as demanded." H
1100 SUPREME COURT REPORTS [200 ! ] 3 S.C.R.

A He submitted, that this makes it clear that the Court was taking into
consideration the fact that the Universities would not be able to bear increasing ;-
burden as they would not have funds, sources and avenues open for raising
the same. He submitted that this A ward does not provide for paying daily .,
wages on the basis of 1130 of the increased basic starting wage.

B We are unimpressed with this submission, para 7, relied upon, was in
respect of a demand for wage scale on the basis of permanent status. That
demand had been turned down in para 7. Apart from the demand for wage
scale on permanent there was also a separate demand to increase the rate of
daily wages. While the demand for wage scale on permanent status had been
C refused the rates of wages have been increased as set out hereinabove. This
increase is not a one time increase based on the pay at that time. It is a
permanent increase which would go on varying as the basic starting wages
and ,the dearness allowance kept on changing. This. amount equal to 1130 is
based on the basic starting wage and dearness allowance whatever it may be
at any given point· of time. It is clear that the Universities have not made
D payment till date on this basis. We thus find no infirmity in the Order Dt. 23rd
July, 1984. The Universities have to pay on the basis calculated therein. In
order to leave no room for ambiguity we clarify that the amount of Rs.
4,16,97,937.98 was the amount payable as on 23rd July 1984. As the Universities
have not paid. the amounts now due would be much larger. This action of
E Universities in not making payment on this basis definitely amounts to unfair
labour practice in Item 9 of Schedule IV. As set out hereinabove most of the
complaints were also in respect of unfair labour practice under Item 9 of
Schedule IV. It must be held that to that extent there had been an unfair labour
practice. The Universities are now drrected to forthwith work out the wages
due to the workmen as per.the Award dated 20th February, 1985 and to make
F the payments of those amounts.

As set out hereinabove, the Award was in respect of approximately
2,000 workmen .. As regards the other remaining workmen (except for 127
workmen covered by the Award dated 1st April, 1985) who are not covered
G by the Award the principles of equal pay for equal work would apply. Neither
Mr. Bobde nor Mr. Ashwini Kumar could dispute that as between daily
wagers the principles of equal pay for equal work would apply. Therefore, the
rest of the workers would also become entitled to payments and benefits as
given under the Award dated 20th February, 1985 in (IT) No. 48 of 1981. There
is no justification in the Universities in not making payments and giving those
H benefits to the remaining workers on the same basis. We, therefore, direct that
CIVIL APPEAL NOS. 8646, 8648-49, 8651-55 AND 8657-59 OF 1997. H
1102 SUPREME COURT REPORTS [200 I] 3 S.C.R.

A S.N. VARIAVA, J. In view of the Judgment delivered today in Civil
Appeal Nos. 8640-8659 of 1997 and connected matters we do not propose to
take any action in this Contempt Petition. We, however, clarify that the )-...-
Petitioner/Respondent will be at liberty to adopt appropriate proceedings if
our Judgment is not complied with within a reasonable time.

B A.K.T. Civil Appeals and Contempt Petitions disposed of. ..